Planar "disappointed" in quarter, announces changes

Planar Systems Inc. said this afternoon that it is "disappointed" in its recent performance and announced job cuts and a modest shakeup aimed at cutting costs and improving performance.

The Hillsboro company's sales grew nearly 30 percent during the second quarter of Planar's fiscal year, but it lost money and said sales still came up short of its goal. The company blamed "economic challenges and internal execution issues" for the failures.

Sales for the quarter ended March 28 totaled $69.8 million, up from $54.6 million in Planar's second quarter last year.

The company lost $5.2 million in its second quarter, 29 cents a share. That compares to a $3.9 million loss, 22 cents a share, in the same quarter last year.

Planar's control room and home theater divisions didn't meet expectations, the company said. A year ago, Planar agreed to pay $36.7 million to buy a company called Runco International Inc. that makes high-end TVs, projectors and other home theater equipment.

Planar said today that the Runco deal hasn't gone well, partly because of problems integrating Runco into Planar and in part because of economic troubles in the U.S. Planar chief executive Gerry Perkel will take over as general manager of the company's home theater business, replacing Scott Hix, who is leaving the company.

Additionally, Planar said it will cut its work force by 80 from a peak earlier this year of 788.